Morningstar has introduced ratings for semi-liquid funds, including Long-Term Asset Funds (LTAFs) and European Long-Term Investment Funds (ELTIFs).
The framework builds on the firm’s existing Medalist Rating framework, adapting it for private market vehicles.
“Semiliquid funds are becoming more accessible and gaining traction in the investment landscape, but their unique structures present challenges that warrant a reliable framework for evaluation,” said Laura Lutton, Morningstar’s global head of manager research.
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“Morningstar has a long track record of helping bring clarity to complex areas of the market. With this new rating, we are applying that same rigorous approach to help investors assess these strategies with confidence and make well-informed decisions.”
Morningstar will begin assigning ratings in the third quarter of 2025, starting with US-based semiliquid strategies.
The strategies will be assessed using a fully qualitative approach, with coverage determined by Morningstar’s analyst teams based on factors such as investment merit, investor demand, and client interest.
Morningstar said the move is the latest step in its goal to construct a common investment language across public and private markets.
This story was written by our sister title, Portfolio Adviser
